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IPFS News Link • Housing

Decline in Mortgage Forbearance Plans But Payments Drop Too

•, Mish

According to the McDash Flash Forbearance Tracker, as of June 2, 2020, 4.73M homeowners, representing 8.9% of all mortgages are in COVID-19 mortgage forbearance plans. 

That's down from 4.76M last week. The number of loans in active forbearance decreased by a net 34,000 over the past week, marking the first weekly decline since the CARES Act was enacted and the flood of forbearance requests began.

Black Knight CEO Anthony Jabbour Explains the Problem

"According to Black Knight's McDash Flash Payment Tracker, far fewer homeowners in forbearance remitted May payments than did in April. If that trend holds true through the end of the month, the market should be prepared for another likely rise in the delinquency rate for May. Also, expanded unemployment benefits are scheduled to end on July 31. It remains to be seen how that will impact both forbearance requests and overall mortgage delinquencies."